Behind The Greek Headlines: 

Commodity Prices Are Falling

Copper:

We often look at Copper as a proxy for future global economic growth.

In early May Copper made an effort to test the long-term down-trend from early 2011 (high of 4.57) and failed to break through to the upside (near 2.95). Subsequently it has fallen to within reach of it's December lows at 2.46.

If this is an indication for the direction of the global economy, it certainly does not bode well.

Oil:

After a steep drop in the 2nd half of 2014 (from over $100), Oil plummeted to near $44.00 early in the year.

A subsequent bounce saw prices hit close to $62 and had since traded in a narrow range until yesterday which saw a breakdown, below the range, to lower prices near $52.

If this trend to lower prices continues to test the lows (at $44), there could be further significant repercussions for the global economy.

Add this uncertainty to the current uncertainty surrounding Greece and throw in the debacle in the Chinese equity market and we are looking into a gathering potential deflationary storm.

Bond Markets have been responding as 10 year US government bonds have dropped close to .25%  over the last few days.

As I mentioned yesterday, uncertainty forces market participants to move from riskier assets to safer assets. 

And there is plenty of uncertainty swirling around at the moment.